26% of Consumers Find at Least One Error on Their Credit Reports

In 2004, Congress initiated a 10-year project to study the accuracy of the credit reporting industry. The results are published in two-year increments. The most recently published results prove to be rather alarming.

The study found 26 percent of consumers found at least one error on their credit reports. Five percent of consumers found errors on their reports that could negatively affect their terms for loans and insurance.

Each of the 1,001 volunteers were given access to their most recent credit reports from all three major bureaus (Equifax, Experian and TransUnion).

They were asked to review the reports for errors and report their findings. They were then guided through the dispute process with all three bureaus to yield their new score.

“Twenty-six percent of consumers found at

least one error on their credit reports.”

The study found most of the errors (about 235) only had a moderate impact on a study participant’s credit score. But, with interest rates dependent on credit tiers, even a moderate impact can result in a significantly higher interest rate.

Furthermore, those participating in the study were self-selected. This indicates the sample selection for the study isn’t entirely sufficient.

In order for the study to be truly representative of credit reporting industry errors on the whole, a random sample of scores would be needed.

Unfortunately, such an undertaking isn’t possible. Without having a participant volunteer, there’s no way to review the report for accuracy.

While the Federal Trade Commission admits the results of the study may not match the actual percentage of errors found “in the wild,” they do note it’s important to check your score regularly for inaccuracies and use the dispute process to have them corrected.

Steven Tumulski is most knowledgeable about debt and credit repair, and has had his work published more than 5,000 times in his years of writing.
Much of Steve’s education comes from real-world experience, having served in management in the IT field before diving into the world of personal finance.
Steve is a father of three and spends his spare time reading and writing fiction.

Editorial Note: This content is not provided or commissioned by the credit card issuer. Opinions expressed here are author’s alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. Every reasonable effort has been made to maintain accurate information, however all credit card information is presented without warranty. After you click on an offer you will be directed to the credit card issuer’s web site where you can review the terms and conditions for your offer.

Advertiser Disclosure: BadCredit.org is a free online resource that offers valuable content and comparison services to users. To keep this resource 100% free, we receive compensation from many of the offers listed on the site. Along with key review factors, this compensation may impact how and where products appear across the site (including, for example, the order in which they appear). BadCredit.org does not include the entire universe of available offers. Editorial opinions expressed on the site are strictly our own and are not provided, endorsed, or approved by advertisers.